Required information [The following information applies to the questions displayed below.) Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Kyan Company Data from the current year- end balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 20,000 $ 37,000 36,400 57,400 84,540 140,500 5,400 7,000 370,000 311,400 $ 516,340 $ 553,300 Data from the current year's income statement Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, S5 par value Retained earnings $ 780,000 584,100 7,900 14,992 173, 008 5.09 3.78 $ 884,200 638,500 12,000 24,410 209, 290 4.43 3.99 Liabilities and Equity Current liabilities Long-term notes payable Common stock, S5 par value Retained earnings Total liabilities and equity $ 63, 340 S 94,300 83,800 115,000 170,000 236,000 199, 200 108,000 $ 516, 340 S 553, 300 S 30,800 55,600 448,000 170,000 154, 712 $ 53,200 111, 400 402, 500 236,000 87,038 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (C accounts receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and () days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the current ratio. (a) Company Current Ratio Numerator: Denominator: Current Ratio = Current ratio Barco 0 to 1 Kyan 0 to 1 14 Acid Test Ratio > 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (1 days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratic 1A Acct Rec Turn 1A Invent Turnover ? ??????? 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the acid-test ratio. (b) Company Acid-Test Ratio Numerator: Denominator: TI Acid-Test Ratio Barco + = = Acid-test ratio 0 to 1 Kyan 0 to 1 1A Current Ratio 1A Acct Rec Turn Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio Alacct Rec Tura 1A Invent Turnover 1A Days Sal in Inv. 1A Days Sal Uncol 1B short term For both companies compute the accounts (including notes) receivable turnover. Accounts Receivable Turnover (c) Company Numerator: 1 Denominator: Accounts Receivable Turnover Accounts receivable turnover Barco = 0 times Kyan 0 times Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 16 Invent Turnover 1A Days Sal in Iny 1A Days Sal Uncol 1B short term For both companies compute the inventory turnover. Inventory Turnover (d) Company Numerator: 7 Denominator: Inventory Turnover Inventory turnover Barco IT 0 times Kyan 0 times Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Dayt Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the days' sales in inventory. (e) Company Numerator: Days' Sales in Inventory Denominator: Days IL x Barco Days' Sales in Inventory Days' sales in inventory 0 days 0 days x Kyan x Complete this question by entering your answers in the tabs below. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Iny 1A Days Sal Uncol 1B short term For both companies compute the days' sales uncollected. (1) Company Numerator: Days' Sales Uncollected Denominator: 1 X Days Days' Sales Uncollected Days' sales uncollected Barco X - Kyan x 11 0 days = 0 days